Annuities and timing

Q. I have been in FERS for 16 years. I have been in the Army Reserve for 21 and plan to stay in until after my FERS minimum retirement age (58). I have enough combat time to be eligible for early reserve retirement pay at 58.

I have deployed to combat several times and receive a combat-related injury compensation from the Veterans Affairs Department. I have a FERS Thrift Savings Plan and a military member TSP. I am thinking of buying back four years of active-duty time toward my FERS retirement. I believe former President Bush signed a special combat-related compensation offset to allow for full VA compensation and military retirement. I meet the criteria as I was injured in Iraq.

When I turn 58, would I receive:

My full FERS annuity (34 percent), my full VA compensation check, and my full Army Reserve military pay?

When I turn 59.5, would I receive:

My full FERS annuity (34 percent), my full VA compensation check, and my full Army Reserve military pay + now my TSP annuity + my military member TSP annuity?

When I turn 62, would I receive:

My full FERS annuity (34 percent), my full VA compensation check, and my full Army Reserve military pay + my FERS TSP annuity + my military member TSP annuity and now reduced Social Security?

A. You may purchase an annuity with your TSP money at any time following separation from federal service and that annuity income will continue for as long as you live, regardless of your other income.

About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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